Group 1 - The U.S. government has revoked TSMC's authorization to ship necessary equipment to its mainland China factory, which is expected to impact TSMC's chip production capabilities in China [1][2] - TSMC's Nanjing factory primarily focuses on mature process nodes, including 16nm and 28nm, which are used for automotive electronics, IoT, smartphones, and consumer electronics [1] - TSMC's overall production capacity in mainland China is limited, with the Nanjing factory accounting for only about 3% of its total capacity, and the company is evaluating the situation and communicating with the U.S. government to mitigate impacts [2] Group 2 - The Taiwanese Ministry of Economic Affairs believes that the impact on TSMC's overall competitiveness will be limited, but industry insiders warn that the long-term strategic implications could be more significant [2] - A former TSMC engineer argues that the U.S. restrictions may hinder TSMC's global strategy and the growing demand for chips in mainland China could pose a deeper challenge for the industry [2] - An editorial in a Taiwanese newspaper suggests that the U.S. strategy may inadvertently accelerate the localization of China's chip industry, potentially creating a larger market space for domestic manufacturers [3]